2 Kroner – Denmark

In 1915, Denmark’s currency situation was defined by its adherence to the classical gold standard, a system it had maintained since the 1870s. The Danish krone was legally convertible into gold at a fixed rate, ensuring monetary stability and facilitating international trade. This system was managed by the independent central bank, Danmarks Nationalbank, which held substantial gold reserves to back the currency. However, the outbreak of World War I in 1914 placed this system under immense strain, as the conflict disrupted global financial networks and trade flows upon which Denmark's small, open economy heavily depended.

Despite its official neutrality, Denmark faced significant economic pressures from the war. To prevent a damaging outflow of gold reserves and to maintain financial stability, the Danish government suspended the gold standard on August 2, 1914, just days after the war began. This emergency measure made the krone an inconvertible paper currency, allowing the Nationalbank greater flexibility to manage the money supply and protect its gold stock. The immediate goal was to ensure liquidity for banks and businesses and to shield the economy from the external shocks of the war, including naval blockades and volatile capital movements.

Consequently, by 1915, Denmark was operating under a suspended gold standard with exchange controls. The krone's value was no longer directly tied to gold but was instead influenced by government and central bank policy, trade balances, and market sentiment. Inflationary pressures began to emerge due to increased government spending, supply shortages, and a growing money supply. Thus, the currency situation in 1915 was one of managed stability in a precarious wartime environment, marking a decisive break from the pre-war era of automatic gold-convertibility and setting the stage for the monetary challenges of the subsequent wartime and interwar years.